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Date
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January 25, 2010
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Agenda
Item No. 35 Roll
Call No. 10- Communication No.
10-027 Submitted by:
Craig S. Smith, AAE - Aviation Director |
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AGENDA HEADING:
Receive
and File the Financial Statements of the Des Moines International Airport for
the fiscal year ended June 30, 2009.
SYNOPSIS:
Receive
and File the Financial Statements of the Des Moines International Airport (City
of Des Moines Aviation Department) for the year ended June 30, 2009, including
Independent Auditor’s Reports as prepared by McGladrey & Pullen, LLP. In addition to the report on the Airport’s financial
statements, additional reports have been issued on the airport’s compliance with
and control over financial reporting procedures and its compliance with
requirements applicable to the Passenger Facility Charge program.
FISCAL IMPACT:
Amount: $14,500 - paid to McGladrey & Pullen LLP,
Moline, IL, for auditing services.
Funding Source:
Fiscal Year 2010 Operating Budget, Airport Operations Fund, Administration,
EN002 AIR010100.
ADDITIONAL
INFORMATION:
Chapter
22 of the Des Moines City Code assigns certain responsibilities to the Airport Board,
including the need to “ensure that all Airport revenues collected by or under
Board authority are credited to the Airport Enterprise Fund, and that all
expenditures from said fund are done in accordance with applicable state and
federal laws and regulations.”
However,
because the Aviation Department functions as an Enterprise Fund of the City of
Des Moines, the City of Des Moines Finance Department has historically managed
all audit requirements related to Airport receipts and disbursements.
Based
on a past recommendation of the Airport Board, the Aviation Department engages
the same independent accounting firm as the City, which has typically been
retained through a Request for Proposals (RFP) process. The City’s most recent RFP covers fiscal
years ending June 30, 2009, 2010, and 2011, with the option of extending an
additional three years by mutual agreement.
The successful proposer was McGladrey and Pullen, LLP (McGladrey).
McGladrey
has completed its audit for the fiscal year ended June 30, 2009, and issued an
unqualified audit report on the Airport’s financial statements, its compliance
and control over financial reporting procedures, and its compliance with
requirements applicable to the Passenger Facility Charge program. Copies of each audit report and financial
statements have previously been presented to the Airport Board for review and the
Board recommended that the report and statements be forwarded to the Council. As
noted within the report, there were no findings or questioned costs and the
Airport received an unqualified audit opinion, which is the highest level of
assurance available.
Finally,
it should also be noted that the Airport information is also reported as a part
of the City’s Comprehensive Annual Financial Report (CAFR). The airport reports are available for public
viewing at the Aviation Department administrative offices as well as on the
airport website --http://www.dsmairport.com/AboutUs/Annual_Report.htm.
PREVIOUS
COUNCIL ACTION(S):
Date: April 6, 2009
Roll
Call Number: 09-563
Action: Approve contract for independent
auditing services with McGladrey & Pullen, LLP for
fiscal years ending June 30, 2009, 2010 and 2011, with three one-year renewal
options, base price of $117,000 per year (Council Communication No. 09-188)
Moved by Hensley to adopt. Motion
Carried 7-0.
Date: January 26, 2009
Roll
Call Number: 09-127
Action: Receive and file the Financial
Statements of the Des Moines International Airport for the year ending June 30,
2008, including Independent Auditors’ Reports from McGladrey and Pullen, LLP. (Council Communication No. 09-020). Moved by Vlassis to adopt. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S):
Date: December 1, 2009 – Airport Board
Resolution Number: A09-212
Action: Receive and file the Audited Financial
Statements for the fiscal year ended June 30, 2009, including the Independent
Auditors’ Reports from McGladrey & Pullen, LLP. (Board Communication No. 09-1204) Moved by Ross to adopt. Motion Carried: 7-0.
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public
at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council
meeting. Citizens can also request to
receive meeting notices and agendas by email by calling the Clerk’s Office or
sending their request via email to cityclerk@dmgov.org.